Transport, real estate and hotel group Shun Tak Holdings Limited reported a 117 per cent year-on-year rise in revenues for 2019 to a total of HK$15 billion (US$1.9 billion).
However, net profit after taxes for the year generated by the group headed by businesswoman Pansy Ho still fell by 4.3 per cent year-on-year to some HK$5.1 billion.
A large percentage of profit generated by the group came from its property division, which grew by more than 100 per cent to HK$6.5 billion.
The group already sold 77 per cent of housing units included in the Nova Grand, the final phase of its flagship residential Nova City project in Taipa, covering 1,700 residential units in eight towers.
‘During 2019, a total of 33 units have been newly transacted and 951 units have been handed over to purchasers with profit recognized within the year. […] The remaining inventory will be strategically launched in the coming years and is expected to be supported by the end-user market,’ the group noted.
However, the opening of the Nova Mall project, originally scheduled for early 2020, in the property has been delayed due to ‘recessionary pressure clouding the retail industry’ in the latter half 2019 and the outbreak of the coronavirus in this year.
The shopping mall will include international brands IKEA, CGV and Toys ‘R’ Us.
The group is still awaiting advice from the Macau SAR Government on the land
parcels to be allotted for the Harbour Mile project in Nam Vam, set to link One Central and the Macau Tower, and will review its arrangements for the allotted site.
Shun Tak also noted that its transport segment business has been greatly impacted by the opening of the Hong Kong-Zhuhai-Macau Bridge as well as the political turmoil that gripped Hong Kong in the latter half of 2019.
Its flagship ferry operations under TurboJET saw a 39 per cent year-on-year dip in profits to HK$122 million.
‘The division has engaged in a series of cost control and optimization measures to
weather the challenge, and is committed to finding new foothold amid emerging opportunities within the Greater Bay Area through strategic product positioning,’ Shun Tak noted.
The group has invested in several cross-border land transport services on the HZMB, ranging from the “Golden Bus” shuttle service, “HK-MO Express” coach service and “Macau HK Airport Direct” shuttle service, to “TurboJET Cross Border Limo.
In March 2020, the company also announced a shareholding restructuring in association with China Travel International Investment Hong Kong Limited to create a joint Greater Bay Area transportation group.
Political instability in Hong Kong and its impact in tourism arrivals, coupled with subdued global economic outlook and China-US trade tensions, led to losses connected to Shun Tak’s hotel operations to expand from HK$35 million in 2018 to HK$220 million in 2019.
The group indicated that the performance of its subsidiary Artyzen Hospitality Group, responsible for the management of Grand Lapa and Grand Coloane Resort, remained subdued in 2019 as profitability was undermined by pre-management expenses for its pipeline properties, including seven in Shanghai, one in Hengqin, and one in Chongqing.
Addressing the Covid-19 pandemic, Shun Tak stated the onset of the virus since Chinese New Year has brought not only regional but global travel and tourism industry to a standstill.
‘A large proportion of the Group’s portfolio in travel, retail and services are among the worst hit sectors of the economy. Many uncertainties still cloud the situation, and it is expected that consumer confidence will only recover gradually,’ Shun Tak added.
Nonetheless, the company considered that it has built a solid foundation over the past years with a respectable portfolio of new projects that hold steady potentials in the long run and remained confident it would rebound quickly upon the passing of the crisis.
